How to Tame Your First Credit Card

The following video is part of our "Motley Fool Conversations" series, in which Motley Fool editor Erin Kennedy and Fool contributor and financial planner Dan Caplinger discuss topics from around the investment world.

In today's installment, Erin and Dan discuss the challenges that young people face in dealing with credit cards for the first time. As easy as it is to get and use credit cards, paying them off can take months or even years if you're not careful about keeping your spending in check. Moreover, Dan points out how important building a good credit history can be, not just for borrowing money but for everything from getting insurance to landing your next job. Dan gives some advice to help you avoid making big mistakes, protect yourself from identity theft, and keep on top of your credit to make sure you get off to the right start. He also points out the value of prepaid cards as a training tool parents can use to help their children get used to using plastic before graduating to full-fledged credit cards.

By keeping your credit cards in check, it's also easier to get started investing sooner for a healthy retirement. Check out the Fool's free report, "3 Stocks That Will Help You Retire Rich," to learn about three promising prospects as well as general advice on how to get started with investing. Just click here to get your free report today.